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Third party research

Pricer: '25e closing in on EBIT margin target - ABG

Pricer

This is a third party research report and does not necessarily reflect our views or values

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Order intake +37% y-o-y on return of one key customer
'25-'26e EBIT up 13-6% on higher gross margin
Share trading at 7x '25e EV/EBIT


Strong order intake and gross margin

Pricer delivered soft Q4 sales but another strong quarter for profitability. Sales were SEK 630m (-15% vs. ABGSCe), representing -22% growth y-o-y, adjusted for FX. Sales were hurt in part by continued low activity in France. However, order intake came in at an impressive SEK 916m (+37% y-o-y), which was in line with estimates (+2% vs. ABGSCe), with large announced orders from Canada and Finland. We expect order intake to decrease in Q1'25e both y-o-y and q-o-q, as comps are tough. The increased gross margin was driven by favourable customer and product mix, as well as lower component costs. While the GM could come down in H1 if French customers return after pent-up demand, we remain positive about the gross margin trend. With the better gross margin and lower opex, EBIT increased y-o-y to SEK 51m (vs. SEK 20m in Q4'23). EBIT decreased slightly q-o-q, with a margin contraction from 10% to 8%, although the FY'24 margin of 7% which is a major improvement from 0.6% in FY'23.
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